NKVD was born out of the remenants of one of the first allied clans. The clan Diablo was created by a group of talented player during the Beta version of the game. After a few months some key players moved on and the clan disbanded. The players who remained created a new clan with more WWII themed name.
NKVD had by far the most skilled players on the allied side and to an extent the most skilled players in the game. They were the first clan to widely use a "Platoon" strat in which they used the Russian bonuses to create huge territories that were unbreakable to most other players. They were the object of envy and scorn. Some thought that they played to greedy and were "in it for their own personal glory" while others saw what they were able to accomplish and wanted to emulate them.
There are stories of 10 NKVD players holding the top 10 spots throughout a round and try as they might the axis could not dislodge them from those spots. Even facing 30-40 of the other sides best players NKVD could not be brought down, and eventually the rest of the allied side was able to break through the axis hordes and win.
The NKVD's arch-enemy was the axis clan Elite! Elite! was a far larger clan but did not have the skills to compete with NKVD. They had to resort to overwhelming NKVD with numbers and sacrificing their territories so that others could break them.
NKVD's talent worked against it as well. Many of the players in NKVD were seen as being egotistical and greedy. Sharing strats was not a common practice back then and many players on the allied side became frustrated and angry with NKVD. This resulted in the clan switching sides for a few rounds and calling themselves Gestapo. This resulted in the axis crushing the allies for a few rounds in a row at which point the allied leadership appologized to NKVD and they returned. This however left a sour taste in both parties mouths. Many in the allied leadership felt betrayed by NKVD and many NKVD players felt they were not appreciated.
The clan opperated for another 6 to 8 months and slowly most of the founding members left.
A few years later Regis of NKVD returned to the game. He wanted to resurect the former greatness that was the NKVD. He started small recruiting a few of his friends still left in the game and forming the clan Diablo II after these players established themselves as top players again, and with the return of the NKVD Propaganda Minster Thomas, Diablo II was reformed into NKVD. The clan mostly accepted veteran players looking for a place to chat with friends, but they were a force to be reckoned with in the game.
NKVD created close bonds with an axis clan
RDK which had the same philosphy and play style as NKVD. Both clans were democratically run and contained some of the top veteran players on both sides. Once the axis side began to dominate the game due to superior training of it's new players and better coordination, RDK and NKVD decided to merge and form the legendary
UberClan.
NKVD was the first clan of it's day to contain both highly skilled and highly proressive players as well as be the first clan to not function as a militaristic heiarchy. It paved the way for other "Vets Only" clans and left a legacy for other to try and strive for. The image of a small group of people being the beacon for many to try and attain those same heights.